HARRISBURG — Gov. Ed Rendell said today a state budget deal was unlikely to be hammered out this week or next, but characterized recent talks with legislative negotiators as productive.

"Last night's meeting was cooperative, the spirit of the meeting was good," Rendell said.

The governor also said 10 banks and credit unions have agreed to help the 69,000 state employees who may soon have payless paydays by giving them loans or lines of credit.

Pennsylvania's budget year ends at midnight today, and Rendell said he was resigned to starting the new fiscal year without a spending plan in place for the seventh straight year.

The state has an estimated $3.2 billion revenue shortfall for the current year and a similar gap to fill for the 2009-10 year.

Rendell said he and legislative negotiators went through 358 of about 700 budget lines during a meeting at his Harrisburg home Monday night. They are expected to resume that process later today.

Senate Majority Leader Dominic Pileggi, R-Delaware, said the two sides remain far apart.

"We should be spending less in the coming fiscal year than we are spending in the current fiscal year," Pileggi said. "The governor will not accept that premise and instead would like to review individual spending lines to come to a total of spending through that process. We think it's an upside-down process."